Manila: The National Food Authority (NFA) is intensifying its palay procurement operations nationwide as the government evaluates a proposed floor price for unmilled rice to protect farmers from unfair trading practices and stabilize the market. In an interview over Radyo Pilipinas, NFA Administrator Larry Lacson emphasized the operational status of newly reopened warehouses in Bulacan, Zamboanga, Cagayan Valley, and other rice-producing areas.
According to Philippines News Agency, Lacson highlighted the reopening of several warehouses, including those in Bulacan's Maytika, which has a 70,000-bag capacity. Despite incomplete renovations, these facilities are already receiving palay to support farmers in Bulacan and surrounding provinces. Lacson stated that rehabilitating and reopening these warehouses enables the NFA to absorb more harvests, stabilize farm incomes, and build up the agency's buffer stock. Additional facilities have also been reopened in Cagayan Valley and Zamboanga.
Lacson asserted that the NFA's efforts aim to protect farmers from traders who purchase palay at low prices. Currently, the NFA buys fresh palay at PHP18 to PHP19 per kilogram, significantly higher than the PHP12 to PHP13/kg offered by some traders. For dry palay, the buying price is PHP24/kg. The agency has also distributed 14 new trucks to select branches nationwide to enhance logistics.
During a visit to an NFA warehouse in Bulacan, President Ferdinand R. Marcos Jr. reaffirmed his commitment to ensuring fair farm gate prices for rice farmers amid reports of palay being bought for as low as PHP11 per kilo. The President noted that unstable market prices hinder planning and sustainability for farmers and the government.
Lacson stated that the NFA holds over 414,000 metric tons of rice, sufficient for 11 days of national consumption, with ongoing efforts to meet the 15-day buffer stock requirement under the Rice Tariffication Law. To sustain these efforts, the NFA proposed a PHP27 billion budget for the year, up from PHP19 billion allocated for 2024, to support procurement and food security initiatives.
Beyond procurement, Lacson revealed that the NFA is collaborating with the Department of Labor and Employment (DOLE) to expand access to PHP20 rice, originally for vulnerable sectors, to include minimum wage earners. The agency is also advocating for amendments to the Rice Tariffication Law to allow direct rice sales to consumers, enhancing market efficiency and price stability.
